Performance calculation

I'm not sure if I have this figured out. Does this mean if I make 1,000 on a 50,000 account I've made 2% for the day? Then do a std. deviation of all the daily returns for the risk adjusted return rate?

"Each Entrantâs total Challenge period return is divided by that Entrantâs daily standard deviation to determine a risk adjusted return rate. As the daily standard deviation calculation incorporates the Accountâs daily percentage change divided by the Entrantâs stated Nominal Account Value, Entrants should carefully consider this when indicating their Nominal Account Value. The winning Challenge Entrant must also have had a "reward to risk" ratio that was greater than the published MarHedge CTA Index "reward to risk" ratio during the Challenge period."

This is from their annual trading contest in case anyone's interested.